Origin already has an established pipeline of potential developments in the South / South East
CHICAGO, October 20, 2021– (BUSINESS WIRE) – Top performing private real estate manager Origin Investments, following the closing of its very successful first fund Qualified Opportunity Zone (QOZ), launched a second QOZ fund targeting $ 300 million in funds. Origin’s QOZ Fund II will invest in core multi-family development in fast-growing US target markets and already has three core developments due for due diligence prior to closing.
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The main advantages of Origin’s QOZ Fund II include tax deferral, tax reduction and tax elimination. (Graphic: Business Wire)
âThere has been huge demand from the investment community and we are launching QOZ Fund II, a virtual carbon copy of our first fund, to create investment opportunities offering exceptional returns as well as substantial tax benefits for investors, âsaid the co-CEO of Origin Investments. Michael Episcope.
Origin’s QOZ II fund will adopt the same structure and strategy as its first QOZ fund, which closed in August after raising $ 265 million and ranked in the top 2% of all QOZ funds at the level. national in terms of capital raised, according to Novogradac, a professional services firm that tracks the QOZ investment. The 11 development projects of Origin’s QOZ Fund I are expected to have a construction value of over $ 767 million.
Episcope cited the unprecedented and growing investor appetite for QOZ investments as a catalyst for the launch of Origin’s QOZ II fund. The Origin team is spending a significant amount of time developing a strategic portfolio of projects for QOZ Fund I investors, a process that will also benefit QOZ Fund II investors.
âBefore the first commitments are made, Fund II investors benefit greatly from the time we have already spent building a pipeline of opportunities for Fund I,â noted Episcope. âGiven this foundation, I have no doubt that we see all of the leading QOZ multifamily development opportunities in our target markets ahead of our competitors. “
The main advantages of Origin QOZ Fund II include:
A targeted net internal rate of return (IRR) of 10 to 12% and a multiple of net equity of 2.25 x to 2.5 x;
Carry forward of the capital gains realized on a previous investment until the end of 2026 by reinvesting these capital gains in the QOZ fund of Origin;
Elimination of capital gains tax that the QOZ Fund generates by holding the investment for 10 years or more; and
A 10% tax reduction on deferred capital gains tax with an investment made before January 1, 2022.
Origin’s strategy for QOZ investing focuses on three key elements:
Invest in grassroots development projects that can produce high risk-adjusted returns, regardless of expected QOZ tax benefits;
Develop properties in high growth areas in already changing neighborhoods; and
Creating a diversified portfolio of Class A properties built to the core that produce stable cash flow for investors once assets are fully invested and developed.
âWhether we invest for our QOZ or IncomePlus funds, projects are evaluated on their own merits, without relying on any outside influence such as tax relief to improve expected returns,â said Origin CEO David Welk. “If the opportunities we are evaluating cannot be sufficient on their own, we do not pursue them.”
Origin Investments already has three projects going through its rigorous and targeted due diligence process for QOZ Fund II which are located in the Southwest and Southeastern United States in high growth markets.
Origin will accept commitments from accredited investors until they raise $ 300 million in capital or December 31, 2023, the fund’s closing date. For more information on investing in Origin Investments Qualified Opportunity Zone II, visit https://origininvestments.com/offerings/qoz-fund-ii/.
About Origin Investments
Origin Investments is a private property manager that provides premier real estate solutions for individual investors, family offices and advisors to build and preserve their wealth. The company builds, purchases and finances multi-family real estate projects in fast-growing markets in the United States Since its inception in 2007, Origin has executed more than $ 2.6 billion in real estate transactions and our executives have invested more than $ 60 million. dollars alongside our investors. Origin prides itself on providing unparalleled service to its investors and its performance ranks us in the top decile of top performing private real estate fund managers globally ranked by Preqin, an independent provider of alternative investment data. Origin is currently accepting new investors for its Qualified Opportunity Zone, IncomePlus and Multifamily Credit open funds, which seek to provide tax efficiency, improve portfolio returns, maximize growth and minimize portfolio volatility. To learn more, visit www.origininvestments.com.
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Michael Millar, Open Slate Communications
847-863-1037, [email protected]